Rule 20:06:21:29 Replacement notices.
20:06:21:29. Replacement notices. Upon determining that a
sale will involve replacement, an insurer, other than an insurer using direct
response solicitation methods or its agent, shall furnish the applicant, before
issuance or delivery of the individual long-term care insurance policy, a
notice regarding replacement of accident and sickness or long-term care
coverage. The applicant shall retain one copy of the notice and the insurer
shall retain an additional copy signed by the applicant. The notice must be
substantially the same as the notice published in Appendix B at the end of this
Insurers using direct response
solicitation methods shall deliver a notice regarding replacement of accident
and sickness or long-term care coverage to the applicant upon issuance of the
policy. The notice must be substantially the same as the notice published in
Appendix C at the end of this chapter.
If replacement is intended, the
replacing insurer shall notify, in writing, the existing insurer of the
proposed replacement. The existing policy shall be identified by the insurer,
name of the insured and policy number, and address, including zip code. The
notice shall be made within five working days from the date the application is
received by the insurer or the date the policy is issued, whichever is sooner.
22 SDR 97, effective December 18, 1995.
Authority: SDCL 58-17B-4.
Implemented: SDCL 58-17B-5.1.
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